True said that the council's decision was "correctly made" under the 2016 policy but the sole reason for declining the application was no liquor licence was held at the time.
However, this policy did not prevent the council from granting the application as it was not a legal requirement to obtain a gaming licence, he said.
True said a liquor licence application was lodged on March 7 and was granted on June 14, subject to two conditions, which related to some building works and the kitchen.
Police had no concerns with the venue nor with the business owners Jaspal Singh and his family who have been involved in the industry for more than six years, he said.
The Singhs have licensed premises in Merivale, Tauranga CBD, Te Puke, Katikati and Putaruru and were "well respected and highly experienced" operators, he said.
True said there were no objections to the publicly notified liquor licence application.
If the appeal was granted, the operators would still need to go through a highly scrutinised process with the Department of Internal Affairs, including a site visit, he said.
"The Lion Foundation gives you an absolute assurance there is a zero risk of these machines lighting up in the tavern before the on-license certificate is held," he said.
The Lion Foundation had the ability to disable gaming machines to ensure compliance with this undertaking, True said.
True said the tavern was a "modest, small modern establishment' in a "low-deprivation" industrial area, "perfectly suitable" to host a small number of gaming machines.
True said this situation was "unique" to Tauriko Sports Bar and would not set a precedent.
Cr Steve Morris told True and Jaspal Singh that he and the other commissioners needed time to consider today's evidence and would let them know their decision in due course.
Outside of the council chambers, Mr Singh said it was a "matter of fairness" and only proper that the consent be granted.
The council's sinking lid policy has been controversial.
Several communities, social and sporting groups, have opposed the sinking lid policy as they believed it would cut the funding they received from gambling trusts.